Gov’t ensured double-digit economic growth for 2 years “despite challenges”, says Economy Minister

Georgian Economy Minister Levan Davitashvili said the Gov't was able “not only to maintain economic stability but also to ensure double-digit growth” for two years in a row “despite challenges”. Photo: Ministry of Economy, 04 Oct 2023 - 18:39, Tbilisi,Georgia

Georgian Economy Minister Levan Davitashvili on Wednesday said the Government was able “not only to maintain economic stability but also to ensure double-digit growth” for two years in a row “despite challenges”. 

The years 2022 and 2023 were the years of significant recovery and improvements in almost all directions of the economy. In 2022, a record volume of exports, tourism revenue and foreign direct investment was recorded. The dynamics of economic growth continues in 2023 - the average economic growth in January-August is seven percent”, he said. 

Davitashvili said the level of poverty and unemployment in the country had decreased to a “historic low” last year, while in the first and second quarters of 2023, the unemployment rate had decreased by 1.4 percentage points annually.

We can say that poverty has actually been halved over the last ten years, however, unemployment and further reduction of poverty is one of our main tasks - this is where our economic policy is directed, which involves strengthening the competitiveness of the private sector, carrying out structural reforms, expanding the export potential and qualitative improvement of trade”, the official noted.

It also includes promotion of energy security, diversification of the country's economic functions, effective use of new opportunities and, most importantly, improvement of connectivity with the European Union”, he added.

Davitashvili highlighted several international rankings and studies, which he said “confirm” Georgia's progress.

Despite the current challenges, Georgia was able to maintain its sovereign credit rating in the background when the credit rating of many countries deteriorated. According to rating companies - Fitch, S&P, Moody's - Georgia ensured the maintenance of the rating at the level of the pre-pandemic indicator and overcame the crisis without deterioration of the rating”, Davitashvili said.

He also noted Fitch had upgraded the outlook of Georgia's sovereign credit rating from stable to positive at the beginning of 2023.